Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

Despite France’s previously well-deserved reputation as a highly centralised state, a significant number of
responsibilities have been devolved to regional and local government over the past two decades. The
process has not been easy. The extremely large number of very small municipalities makes economies of
scale in the implementation of policies hard to realise, and measures to overcome this have been at best
only partially successful. Competence is often shared between levels of government, obscuring
accountability, and the central government has often retained an arguably unnecessary degree of
prerogatives. Reorganising the system to avoid overlapping responsibilities and improving transparency
and accountability in local government finance provide some difficult challenges.
This Working Paper relates to the 2007 OECD Economic Survey of France
(www.oecd.org/eco/survey/france), and is also available in French under the title "Faire face aux défis de
la décentralisation en France".